I've done this done this multiple times with a Treo 700p without canceling the HotSync on the Palm as follows: (Some older Palm PDAs don't connect to the USB when plugged in and should be done as you described)
1. Disable any OS X Palm HotSync.
**2. Disable USB auto-connect for the Parallels VM**
3. Start the VM.
4. Be sure Windows HotSync is set for USB
5. Plug the Palm Handheld into a USB port.
6. Enable "Palm Handheld" in the VM USB list (toolbar or menu)
**7. Wait for the Windows USB connection tone.**
8. Press HotSync button on Palm USB connector - HotSync starts in a few seconds.
Last edited: Jan 21, 2007